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15 January 2014
United States Attorney Wigginton Highlights Collections Made by His Office and the Department of Justice on Behalf of the American TaxpayerRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, would like to highlight some of the recent accomplishments in the area of collecting and recovering funds on behalf of the taxpayers.
Making Crime Pay Throughout The United States
During the last fiscal year, the U.S. Department of Justice collected a total of more than $8 billion in civil and criminal actions on behalf of American taxpayers. This represents nearly three times the roughly $2.76 billion of the Department’s direct appropriations that fund its main litigating divisions and all 94 United States Attorney’s Offices. Combined with collections secured during fiscal year 2012, last year’s total means that the Department has attained the highest two-year total in its history – bringing in a noteworthy $21 billion.
Our 2013 collections arose from successful prosecutions of offenses ranging from mortgage fraud schemes, antitrust violations, and banking scams, to federal health violations and environmental offenses; from civil debts collected on behalf of other federal agencies to restitution, criminal fines, and felony assessments – including many secured by U.S. Attorney’s Offices across the country. More than $3 billion of last year’s total related specifically to health care fraud on federal programs like Medicare and Medicaid. In fact, for every dollar we’ve spent to combat health care fraud over the last three years, the Justice Department and its partners have returned an average of nearly eight dollars to the U.S. Treasury, the Medicare Trust Fund, and others.
As Attorney General Eric Holder recently noted, this work is enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. All across the country – from Wall Street to Main Street – the Justice Department’s robust criminal and civil enforcement efforts have yielded an extraordinary return on investment for American taxpayers, in addition to enforcing federal laws and protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse.
Here in the Southern District of Illinois, my colleagues and I in the United States Attorney’s Office have taken significant steps forward in the fight against frauds committed against agencies of the United States. As an example, in January 2013, the Southern District of Illinois recovered $4,250,000.00 as part of the settlement made with American President Lines (APL). In this instance it was alleged that APL billed the United States for, and the United States paid for, various costs associated with the transport and shipment of Army & Air Force Exchange Service and Defense Logistics Agency cargo containers from the United States to military outposts in Afghanistan. In fact, APL’s conduct with respect to certain shipments did not comply with the terms of the contract, making a fraud against the United States.
We can all be proud of these and other results that the Justice Department and its federal, state, and local law enforcement partners have attained. But we cannot yet be satisfied. Particularly in this time of nearly unprecedented budgetary difficulties and increasingly limited funding, it is more important than ever that government leaders continue to serve as sound stewards of precious taxpayer resources.
In the days ahead, as Congress completes its annual appropriations process – and as my colleagues and I plan for 2014 and beyond – I urge Representative Bill Enyart and Representative John Shimkus, and all other Congressional leaders to ensure that the Justice Department will have the resources it needs to build on its recent achievements. By increasing support for the Department’s vital work, we can improve its ability to secure additional collections and return stolen funds to the public coffers. In this way, given adequate funding and resources, my office will make crime pay the taxpayers, not the criminals.
Reference is also made to the Press Release Sent December 20, 2013, highlighting specific collections made by the Office of the United States Attorney for the Southern District of Illinois.
Two Ohio Men Indicted for Crack Cocaine ConspiracyRead the Press Release
A three-count indictment was unsealed today charging two Ohio men with conspiracy to distribute and distribution of crack cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Richard Scales, age 27, of Windham, Ohio, was arrested today. Mario D. Ervin, age 34, of Warren, Ohio, remains at large.
Count 1 of the indictment charges that in or about November 2012, Ervin and Scales conspired with each other to distribute more than 28 grams of crack cocaine. As part of the conspiracy, Ervin would supply Scales with crack cocaine for distribution in the Ravenna, Ohio area and elsewhere.
Counts 2 and 3 of the indictment charge Ervin and Scales with distributing more than 28 grams of crack cocaine on or about November 13 and November 19, 2012.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the Portage County Drug Task Force. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Men Charged Federally with Access Device FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a federal grand jury in Scranton returned an Indictment yesterday against Kalvin Rasheem Lopez, 34, Rockaway Park, New York, and Chaka Burgess-Frazier, 36, Tannersville, Pennsylvania, charging both men with conspiracy and access device fraud.
According to U.S. Attorney Peter Smith, Lopez was also charged individually with multiple counts of aggravated identity theft and fraud in connection with identification documents. The Indictment alleges that beginning in June 2013 and continuing through November 2013, the defendants possessed and used counterfeit access devices to purchased merchandise throughout the Middle District of Pennsylvania.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Burgess-Frazier faces 20 years imprisonment and fines in the amount of $500,000. A warrant has been issued for his arrest.
Lopez faces 45 years imprisonment and fines in excess of $1,000,000. He is in custody at the Lackawanna County Prison.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
****Two Akron Men Indicted for Cocaine ConspiracyRead the Press Release
Two Akron men were indicted for their roles in a cocaine conspiracy, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jermaine D. Bailey, age 39, and Leonard B. Tyler, Jr., age 32, were charged with one count each of conspiracy to possess with the intent to distribute approximately 245 grams of cocaine and one count of possession with intent to distribute approximately 245 grams of cocaine on November 13, 2013.
If convicted, the sentences of Tyler and Bailey will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, his role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation is being conducted by the United States Postal Inspection Service with assistance from the Akron Police Department. The case is being prosecuted by Kevin Culum, Trial Attorney.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Twelve Firearms Seized, Scituate Resident Detained in Ongoing ATF, Scituate Police, U.S. Attorney’s Office Firearms Trafficking InvestigationRead the Press Release
PROVIDENCE, R.I. – An investigation by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Scituate Police Department and the United States Attorney’s Office into the alleged trafficking of firearms from a Scituate, R.I., residence resulted today in the seizure of nine firearms and more than 30 marijuana plants from the residence, and the arrest and detention of Philip Debartolo, 29, of Scituate, on federal firearm and drug charges.
ATF agents, with the assistance of Scituate Police and DEA agents, executed a court authorized search of Debartolo’s residence this morning and seized six semi-automatic pistols – five with high capacity magazines, three revolvers and a significant amount of ammunition hidden beneath the floor boards of a second floor storage room. Agents and officers also seized 31 marijuana plants from the basement.
The investigation and arrest of Debartolo was announced by United States Attorney Peter F. Neronha; Daniel J. Kumor, Special Agent in Charge of the Boston field divisionof ATF; Scituate Police Chief Colonel David M. Randall; and John J. Arvanitis, Special Agent in Charge of DEA’s New England field division.
United States Attorney Peter F. Neronha commented, “This case is yet another example of a stark reality: the existence of a legal market for firearms does nothing to stem their illegal distribution. As with any other product, there is a ready and willing illegal gun market for those who, for good reason, cannot lawfully possess a gun or who simply want a cheaper price. Combatting this illegal market has been, and will continue to be, among the highest priorities of this Office, because, at bottom, it is an unregulated, free-flowing source of guns to those who would do their fellow citizens catastrophic harm.”
Guns, drugs and violence plague cities across the country,” said Daniel J. Kumor, Special Agent in Charge of the Boston field divisionof ATF. “This investigation took a dozen crime guns off the streets and ensures that our neighborhoods are a little safer and that these firearms will never fall into the hands of individuals whose only intent would be to add to the violence.”
According to documents filed with the court, it is alleged that on several occasions an undercover ATF agent spoke with and met with Debartolo to arrange and to purchase three firearms, including a sawed-off shotgun, for between $300 and $400 dollars. It is also alleged that on numerous occasions Debartolo sold to the agent plastic bags containing approximately one ounce of marijuana, each for between $200 & $225 dollars.
Debartolo appeared today before U.S. District Court Magistrate Judge Lincoln D. Almond and was ordered detained on a federal criminal complaint charging him with being a felon in possession of firearms, possession of a firearm with an altered or obliterated serial number, possession of an unregistered sawed-off shotgun, and distribution and manufacture of marijuana. According to documents filed with the court, in 2005, Debartolo was convicted in Rhode Island state court on felony assault, drive-by shooting and firearm charges.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Topeka Man Charged with Drug TraffickingRead the Press Release
TOPEKA, KAN. - A Topeka man was charged in federal court today with drug trafficking and firearms violations, U.S. Attorney Barry Grissom said.
Faustino Soto, 41, Topeka, is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm by a user of controlled substances.
A criminal complaint filed in U.S. District Court in Topeka alleges that on Jan. 13 the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas Bureau of Investigation, the Topeka Police Department and the Shawnee County Sheriff’s Office executed a state search warrant at Faustino’s residence at 117 SE Rice Road in Topeka. They seized firearms, cash and methamphetamine.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on the methamphetamine charge, a penalty of not less than five years and a fine up to $250,000 on the charge of unlawful possession of a firearm in furtherance of drug trafficking, and a maximum penalty of 10 years and a fine up to $250,000 on the charge of unlawful possession of a firearm by a user of controlled substances.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas Bureau of Investigation, the Topeka Police Department and the Shawnee County Sheriff’s Office investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.Topeka Man Arrested After Car Chase Charged in Federal CourtRead the Press Release
TOPEKA, KAN. - A man who was arrested after wrecking a car while fleeing from police was indicted today on a federal firearms charge, U.S. Attorney Barry Grissom said.
Justin R. Shumway, 31, Topeka, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction. The indictment alleges Shumway possessed a 9 mm pistol on Dec. 16, 2013, in Topeka. He was prohibited under federal law from possessing a firearm because of prior felony convictions for aggravated battery, attempted battery against a correctional officer, forgery and burglary.
The Topeka Police Department reported arresting Shumway after he fled from officers and wrecked a car near Willow and Broadmoor.
If convicted, Shumway faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Topeka Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mike Warner is prosecuting.
OTHER INDICTMENTS
Jamie L. Herron, 34, Wichita, Kan.; Cory L. Poulter, 37, Halstead, Kan.; Roy L. Scott, 47, Sedgwick, Kan.; and Susan M. Henks, 60, LaCrosse, Kan., are charged with drug trafficking.
Herron is charged with one count of possession with intent to distribute methamphetamine, eight counts of distributing methamphetamine and one count of possession of methamphetamine.
Poulter is charged with one count of possession with intent to distribute methamphetamine and four counts of distributing methamphetamine.
Scott is charged with six counts of distributing methamphetamine.
Henks is charged with one count of possession with intent to distribute methamphetamine.Upon conviction, the crimes carry the following penalties: Possession with intent to distribute methamphetamine: not less than five years and not more than 40 years in federal prison and a fine up to $2 million.
Distributing methamphetamine: A maximum penalty of 20 years and a fine up to $1 million.
Possession of methamphetamine: A maximum penalty of one year and a fine up to $100,000.The Rush County Sheriff’s Office, the Newton Police Department, the Kansas Bureau of Investigation and the Wichita Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Three Sentenced to Federal Prison for Drug TraffickingRead the Press Release
POCATELLO – Droshawn E. Griggs, 28, Toulon K. Mattox, 34, and Chase R. Mitchell, 24, all of Pocatello, Idaho, were sentenced today in federal court for trafficking methamphetamine and oxycodone in and around southern Idaho, announced U.S. Attorney Wendy J. Olson. The defendants appeared today before Judge N. Randy Smith of the Ninth Circuit Court of Appeals, sitting by designation as a district court judge.
Griggs and Mattox were sentenced to 57 months and 41 months, respectively, for conspiracy to possess with intent to distribute a controlled substance. Mitchell was sentenced to 27 months for possession with intent to distribute methamphetamine. In addition to serving federal prison sentences, Griggs and Mattox were ordered to perform 200 hours of community service; Mitchell was ordered to do 100 hours. They pleaded guilty to the charges in October 2013.
According to court documents, between April 2011 and December 2012, various individuals centered around Mattox conspired to possess with intent to distribute methamphetamine and oxycodone. In furtherance of the conspiracy, and working in concert with other individuals, Griggs possessed methamphetamine intending to distribute it to others; Mattox possessed and distributed oxycodone.
Mitchell, according to the plea agreement, possessed and subsequently sold 1.37 grams of methamphetamine to a confidential informant in Pocatello on September 10, 2012. The transaction was part of a controlled purchase arranged and monitored by law enforcement.
The case was investigated by Pocatello Police Department, with assistance from Bannock County Sheriff’s Office, Idaho State Police, and U.S. Marshals Service.
Three Ohio Men Face Federal Firearms ChargesRead the Press Release
Two Youngstown men and a third from Lisbon, Ohio, faced federal firearms charges for unrelated cases, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Joshua Heasley, 24, of Youngstown, was indicted on one cout of making false and fictitious written statements to a federally licensed firearms dealer in order to purchase a firearm.
The indictment charges that on or about June 27, 2013, Heasley made a false and fictitious written statement to Sandel’s Loan, Inc., Youngstown, Ohio, in that he represented he was the actual purchaser of a Mossberg, model 500, 12 gauge shotgun, that he was purchasing for another individual.
Bernard A. Ritteger, 33, of Lisbon, Ohio, was indicted on one count of possession of an unregistered destructive device. The indictment charges that on or about October 19, 2013, Ritteger possessed an S/S Inc., 12 gauge, street sweeper style shotgun, not registered to him in the National Firearms Registration and Transfer Record.
Crispulo Rodriguez, aka Franco Crispulo, age 41, of Youngstown, was indicted on one count of being a felon in possession of a firearm and ammunition.
The indictment charges that on or about December 12, 2013, Rodriguez possessed a Taurus, model PT 24/7 PRO DS, .45 caliber pistol and ammunition, despite previous convictions for armed robbery, assault with a dangerou weapon and assault and battery of a guard or corrections officer, all in the Hampden Superior Court in the Commonwealth of Massachusetts, and manslaughter, in the Norfolk Superior Court in the Commonwealth of Massachusetts.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigations preceding these indictments were conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Youngstown Police Department and the Ohio Adult Parole Authority in the Rodriguez indictment. The cases are being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three of 20 Defendants Sentenced in Meth Distribution RingRead the Press Release
Thirteen Defendants Still Await Sentencing
BOISE – Kenneth Jones, 47, of Rio Linda, California, Robbie Gallegos, 43, of Boise, Idaho, and Heidi Aguila, 34, of Nampa, Idaho, were sentenced this week in federal court for their roles in a large-scale methamphetamine distribution ring, U.S. Attorney Wendy J. Olson announced. The defendants appeared before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
Jones, one of the leader/organizers of the distribution cell, was sentenced today to 130 months in prison followed by five years of supervised release for conspiracy to distribute methamphetamine and interstate travel in aid of racketeering. Gallegos was sentenced on Monday to 33 months in prison followed by three years of supervised release for use of a communication device in committing a drug trafficking offense. Aguila, a lower level distributor, was sentenced on Monday to 24 months of probation for possession of a controlled substance.
Two co-defendants pleaded guilty yesterday to related drug charges. Henry Horne, 66, of Boise, Idaho, pleaded guilty to conspiracy to distribute a controlled substance; he is scheduled to be sentenced on July 28, 2014. Seanna Holmberg, 27, of Caldwell, Idaho, pleaded guilty to using a communication facility to commit a drug offense. She will be sentenced on April 8.
According to court proceedings, the conspiracy involved two distribution cells in the Treasure Valley; one led by Jason Holmberg, the other by Andrew Polney. Jones supplied multiple pound shipments of methamphetamine for transport to the Treasure Valley for distribution by Gallegos and Aguila, among others. The group operated from about June 2012 through the time of their arrests on April 18, 2013.
In addition to those who appeared in court this week, of the 20 defendants charged, three others have been sentenced and 11 have pleaded guilty and will be sentenced between January 27 and February 25, 2014. One remaining defendant, Lena Kettle, is scheduled for trial on March 11, 2014.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration in conjunction with the Nampa Police Department and Boise Police Department. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bureau of Land Management, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Three Men from Tennessee Charged with Sex Trafficking by Force, Fraud and Coercion in the New Orleans AreaRead the Press Release
Granville Robinson, 25, aka Bear and HB, Duane Phillips, 28, aka P-nut, and Anthony Ellis, 25, aka Anthony Deshun Lloyd, Animal and AD, were arrested today for offenses related to their involvement in sex trafficking adult victims to New Orleans as charged in a five-count indictment dated Dec. 20, 2013, and unsealed today by Chief Judge Sarah S. Vance of the U.S. District Court for the Eastern District of Louisiana, announced Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division and U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana. Robinson, Phillips and Ellis are from Memphis, Tenn.
According to the indictment, from May 20, 2013, until Dec. 20, 2013, Robinson, Phillips and Ellis conspired to recruit, entice, harbor and transport several adult women by means of force, threats of force, fraud and coercion in order to engage in commercial sex acts in New Orleans and elsewhere. In addition to being charged with conspiring to commit sex trafficking, Robinson and Phillips are each charged with a substantive count of sex trafficking by force, fraud or coercion, and with transporting women in interstate commerce for the purpose of prostitution between May 20, 2013, and July 2, 2013.
If convicted of conspiracy to commit sex trafficking and sex trafficking by force, fraud or coercion, Robinson, Phillips and Ellis each face a statutory maximum sentence of life imprisonment, a $250,000 fine and a lifetime of supervised release. Robinson and Phillips face a statutory maximum of 10 years in prison, a $250,000 fine and three years of supervised release if convicted of transportation for the purpose of prostitution.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case was investigated by agents from the New Orleans Field Offices of the FBI and the Department of Homeland Security, as well as the Memphis Field Office of the FBI. The prosecution of this case is being handled by Special Litigation Counsel John Cotton Richmond and Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Human Trafficking Prosecution Unit along with Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
Three Men from Tennessee Charged with Sex Trafficking in the New Orleans AreaRead the Press Release
GRANVILLE ROBINSON , a/k/a “BEAR” and “HB”, age 25, from Memphis, Tennessee; DUANE PHILLIPS, a/k/a “P-nut,” age 28, from Memphis, Tennessee; and ANTHONY ELLIS, a/k/a “Anthony Deshun Lloyd,” “Animal,” and “AD”, age 25, from Memphis, Tennessee, were arrested today for offenses related to their involvement in sex trafficking adult victims to New Orleans as charged in a five count indictment dated December 20, 2013 and unsealed today by Chief Judge Sarah S Vance, announced Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division and United States Attorney Kenneth Allen Polite, Jr.
According to the Indictment, from May 20, 2013, until December 20, 2013, ROBINSON, PHILLIPS and ELLIS conspired to recruit, entice, harbor and transport several adult women by means of force, threats of force, fraud and coercion to engage in commercial sex acts in New Orleans and elsewhere. In addition to being charged with conspiring to commit sex trafficking, ROBINSON and PHILLIPS are each charged with a substantive count of sex trafficking by force, fraud or coercion. ROBINSON and PHILLIPS are also charged with transporting women in interstate commerce for the purpose of prostitution between May 20, 2013, and July 2, 2013.
If convicted of conspiracy to commit sex trafficking and sex trafficking by force, fraud or coercion, ROBINSON, PHILLIPS, and ELLIS each face a statutory maximum sentence of life imprisonment, a $250,000 fine and a life time of supervised release. If convicted of transportation for prostitution, ROBINSON and PHILLIPS face a statutory maximum of ten years in prison, a $250,000 fine and 3 years supervised release.
United States Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case was investigated by agents from the New Orleans Field Offices of the Federal Bureau of Investigation (FBI) and Department of Homeland Security (DHS) as well as the Memphis Field Office of the FBI. The prosecution of this case is being handled by Special Litigation Counsel John C. Richmond and Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Human Trafficking Prosecution Unit along with Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
(Download Indictment )
Three Harrisburg Men Charged Federally with Hobbs Act Robbery and Use of A Firearm During A Crime of ViolenceRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Tory Dobbin, age 41, George Stoney, age 40, and Nathaniel Mosely, age 43, all from Harrisburg, Pennsylvania, were indicted today by a federal grand jury in Harrisburg on charges of robbery of a business engaged in interstate commerce (Hobbs Act robbery), and Use of a Firearm During a Crime of Violence.
According to United States Attorney Peter J. Smith, allegedly, on December 3, 2013, the trio, each armed with firearms robbed the Cracker Barrel restaurant located on Brindle Road in Harrisburg, Pennsylvania. They allegedly exited the restaurant with just over $8,000, where they were met by Susquehanna Township Police and fled on foot. After a brief foot chase, all three were apprehended nearby. The trio allegedly stole a car from a Ford dealership in Sunbury, Pennsylvania the night before to be used as a getaway car.
This case was investigated by the Federal Bureau of Investigation, the Capital City Safe Streets Task Force and the Susquehanna Township Police Department. The case is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Sylacauga Man Pleads Guilty to Defrauding TVA with Inflated InvoicesRead the Press Release
BIRMINGHAM -- A Sylacauga man pleaded guilty today in federal court to a $72,000 wire fraud in connection with a scheme to defraud the Tennessee Valley Authority, announced U.S. Attorney Joyce White Vance.
FRANK LEWIS CONN, 49, entered his plea before U.S. District Judge Karon O. Bowdre to one count of wire fraud. His sentencing is scheduled May 28.
According to the October indictment against Conn, he devised a scheme to defraud the TVA by submitting fraudulently inflated invoices for removing vegetation from power lines and other TVA property between February 2009 and October 2009. During that time, Conn was an owner and manager of Conn Equipment Rental Company, which was doing business as Vegetation Management Services.
The TVA Office of the Inspector General investigated the case, which Assistant U.S. Attorney David Estes is prosecuting.
Sixth Defendant Pleads Guilty to Drug Conspiracy Charge in Curious Goods CaseRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced that businessman Daniel Paul Francis, 43, of Dawsonville, Ga., pleaded guilty Tuesday before U.S. Magistrate Judge Patrick J. Hanna, to conspiracy to introduce misbranded drugs into interstate commerce.
According to the stipulated factual basis entered into the court record during the guilty plea, Francis admitted to conspiring with various individuals to cause the introduction of misbranded drugs into interstate commerce between early 2011 through early 2012. Specifically, Francis admitted to conspiring to sell synthetic cannabinoids through a Lafayette area business known as Curious Goods LLC.
Curious Goods sold a product infused with synthetic cannabinoids called “Mr. Miyagi.” Francis admitted that although “Mr. Miyagi” was specifically labelled “not for human consumption,” it was sold to be consumed by the user of the product. The users of “Mr. Miyagi” ingested it, typically by smoking it, in order to achieve a “high.” Francis also admitted that the co-conspirators intended the packaging of “Mr. Miyagi” to be false and misleading with the intent to defraud and mislead others by falsely identifying “Mr. Miyagi’s” contents, failing to identify the manufacturer, packer, or distributor, and falsely labeling “Mr. Miyagi’s” intended use.
Francis faces up to five years in prison, three years of supervised release, and a fine of up to $250,000. A sentencing date of May 16, 2014 was set.
Shady Man Sentenced to Nearly 5 Years in Federal Prison for Stealing High-powered RifleRead the Press Release
BECKLEY, W.Va. – A Shady Spring man who stole a high-powered rifle from a Raleigh County residence last year was sentenced yesterday to four years and nine months in federal prison, announced U.S. Attorney Booth Goodwin. Cameron Martin Taylor, 25, of Shady Spring, Raleigh Co., W.Va., previously pleaded guilty in September 2013 to stealing a firearm. Taylor’s sentence was handed down by United States District Judge Irene C. Berger in Beckley.
On April 24, 2013, Taylor stole an AR-50 rifle from a residence located near White Oak, Raleigh Co., W.Va.
The investigation was conducted by the West Virginia State Police. Assistant United States Attorney John File handled the prosecution.
The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Savannah Man Indicted for Bank Robbery SpreeRead the Press Release
Savannah, GA – Charles Johnson III, a/k/a “Chuckie,” 26, of Savannah, Georgia, was indicted last week by a federal grand jury sitting in Savannah on charges related to six bank robberies in the Savannah area. Johnson was charged with one count of bank robbery, one count of conspiracy to commit armed bank robbery, five counts of armed bank robbery, two counts of using a firearm during a crime of violence and the unlawful possession of a firearm by a convicted felon.
The indictment alleges that Johnson robbed: (1) the Wells Fargo Bank located at 14009 Abercorn Street, Savannah, Georgia on September 25, 2012; (2) the Savannah Postal Credit Union located at 22 Oglethorpe Professional Building, Savannah, Georgia on November 8, 2012; (3) the Heritage Bank located at 620 Stephenson Avenue, Savannah, Georgia on November 26, 2012; (4) the First Chatham Bank located at 7401 Hodgson Memorial Drive, Savannah, Georgia on December 18, 2012; (5) the Colony Bank located at 7011 Hodgson Memorial Drive, Savannah, Georgia on January 3, 2013; and, (6) the Savannah Bank located at 100 Chatham Parkway, Savannah, Georgia on July 11, 2013.
United States Attorney Edward Tarver stated, “The crimes alleged in this indictment are violent acts committed against the entire community. The harm inflicted extends beyond the financial, to include the fear and trauma experienced by bank employees, customers, and the pain levied on their own families. The Department of Justice’s top priority is to protect the American people. This Office will continue to work with our law enforcement partners to remove violent offenders from our community.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “It is criminal investigations such as this that benefit from the FBI’s recently formed Safe Streets Violent Crime Task Force based in Savannah. Agents and investigators assigned to this task force serve as a force multiplier in addressing and apprehending our community’s more violent and aggressive offenders.”
No initial appearance in court has been scheduled. If convicted on all counts, Johnson faces amandatory minimum prison sentence of 30 years and up to a maximum sentence of life. Mr. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The investigation of this case was led by the Federal Bureau of Investigation with assistance from the Savannah-Chatham Metropolitan Police Department S.W.A.T. Team and Tactical Investigations Unit. Assistant United States Attorneys Brian T. Rafferty and Tania D. Groover are prosecuting the case on behalf of the United States.
For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
San Antonio Man Sentenced to Federal Prison for Aggravated Identity TheftRead the Press Release
In San Antonio today, 69-year-old Daniel Henry Lopez was sentenced to 51 months in federal prison for stealing identification information of individuals he met at Veterans Affairs rehabilitation facilities and using that information to obtain credit cards and fraudulent tax refunds from the Internal Revenue Service announced U.S. Attorney Robert Pitman, U.S. Secret Service Acting Special Agent in Charge James Bass, IRS-Criminal Investigation Special Agent in Charge Steve McCollough and Texas Department of Public Safety Director Steve McCraw.
In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Lopez pay restitution in the amount of $84,741 and be placed under supervised release for a period of three years after completing his prison term.
On October 10, 2013, Lopez pleaded guilty to one count of wire fraud and one count of aggravated identity theft. By pleading guilty, Lopez admitted that from January 2012 to April 2013, he devised a scheme to steal means of identification including names, dates of birth and social security numbers from unsuspecting victims. Lopez further admitted that he used that information to create fraudulent income tax returns which, in turn, generated approximately $78,000 for Lopez in false tax refunds. Lopez also created fraudulent documents that he used to open various bank accounts. As a result of his scheme, Lopez caused over $6,000 in losses to financial institutions due to overdrawn checks and other charges.
SAC Steve McCollough noted that the IRS Criminal Investigation Special Agents are aggressively pursuing those who steal others’ identities in order to file false returns. “The IRS is taking additional steps this tax season to further prevent, detect and resolve identity theft cases as soon as possible,” he stated.
This case resulted from an investigation by the U.S. Secret Service, Internal Revenue Service-Criminal Investigation and the Texas Department of Public Safety. Assistant U.S. Attorney Jay Hulings prosecuted this case on behalf of the Government.
San Antonio Drug Trafficker Sentenced to 30 Years in Federal PrisonRead the Press Release
In Del Rio today, 27-year-old Lauro Beltran of San Antonio was sentenced to 30 years in federal prison for cocaine trafficking announced U.S. Attorney Robert Pitman and Homeland Security Investigations Special Agent in Charge Janice Ayala.
In addition to the prison term, U.S. District Judge Alia Moses ordered that Beltran pay a $5,000 fine and be placed under supervised release for a period of five years after completing his prison term.
In July 2013, a federal jury convicted Beltran of one count of conspiracy to possess with intent to distribute over five kilograms of cocaine. Evidence presented during trial revealed that from March 2011 to May 2013, Beltran was responsible for recruiting individuals to transport cocaine from the interior of Mexico into the United States, where it was distributed to locations including Chicago, IL, and Miami, FL. In March 2011, state authorities in Missouri arrested Beltran while he was driving a vehicle which contained $578,328.00 in United States Currency. Authorities seized, and subsequently forfeited, the money believed to be proceeds of drug distribution. At sentencing, Beltran was held accountable for distributing over 150 kilograms of cocaine during the course of the conspiracy.
This case resulted from an investigation by Homeland Security Investigations (HSI) together with the Drug Enforcement Administration and the Phelps County (MO) Sheriff’s Office. Assistant U.S. Attorney Lewis Thomas prosecuted this case on behalf of the Government.
Rigby Man Admits Unlawfully Possessing FirearmRead the Press Release
POCATELLO — Gary Wallace Hoffman, 50, of Rigby, Idaho, pleaded guilty today to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Hoffman was indicted by a federal grand jury in Pocatello on May 29, 2013.
According to the plea agreement, on May 29, 2012, Hoffman sold .81 grams of methamphetamine and a 9 millimeter Glock pistol to another individual in Rexburg, Idaho. Hoffman received $120 for the methamphetamine and $580 for the firearm. Hoffman is prohibited from possessing firearms due to a drug conviction in Bonneville County, Idaho, in 2004.
The charge of unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for April 10, 2014, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Madison County Sheriff’s Office, with the assistance of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Results Announced for Operation Broken Mailbox That Targeted Bulk Mail TheftRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney Benjamin B. Wagner and Deputy Chief Postal Inspector for Western Field Operations Dr. Gregory Campbell Jr. announced the results to date of Operation Broken Mailbox, an ongoing effort involving a surge of postal inspectors and analysts working with local law enforcement partners to investigate and prosecute stolen mail offenses.
Operation Mailbox was initiated following postal customer complaints about mail thieves who were attacking collection boxes via “fishing” techniques, prying open boxes in post office lobbies, breaking into postal delivery trucks, and counterfeiting postal keys to compromise collection boxes and Neighborhood Delivery Centralized Box Units (NDCBUs). The Postal Inspection Service deployed postal inspectors and analysts with strong mail theft investigation backgrounds from around the country to the Eastern District of California beginning in April 2013 to work with postal inspectors already assigned to Sacramento, Fresno, and Bakersfield.
In less than a year, the teams completed investigations leading to federal indictments against 21 defendants. Nine of these defendants have already been sentenced, and six more are awaiting sentencing after pleading guilty. In addition, at least six more persons have been charged by District Attorneys in Kern County and Sacramento County. Operation Broken Mailbox is still underway, and more prosecutions are anticipated.
“Protecting the security of the U.S. Mails, and protecting mail customers from the loss of valuable items and personal identity information, is an important responsibility of the U.S. Postal Inspection Service and of this office,” said U.S. Attorney Wagner. “I appreciate the responsiveness the Postal Inspection Service has shown in devoting resources to address this problem in the Central Valley. I also want to thank our local law enforcement partners for working so effectively with us in this effort.”
Deputy Chief Postal Inspector Campbell stated: “We work closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those who steal mail for criminal gain. A primary goal of the Postal Inspection Service is to protect postal customer’s mail and ensure that their mail is safe from theft.”
Among the cases developed in the course of the operation were the following:
• Sacramento: Postal inspectors secured indictments of three defendants who obtained stolen mail by breaking into NDCBUs in Elk Grove and Sacramento. One of the defendants used her position as a sales clerk at a retail establishment to open fraudulent accounts and use account information obtained from stolen mail. Postal inspectors also secured indictments of five other defendants conducting NDCBU break-ins in Rancho Cordova, Elverta, Rocklin, Roseville, Natomas, Rio Linda, Elkhorn, and Antelope. Several search warrants resulted in the recovery of hundreds of pieces of stolen mail and stolen postal keys.
• Fresno: Postal inspectors conducted a probation search on a recidivist believed to be involved in NDCBU break-ins in Fresno and Madera and recovered stolen mail and six counterfeit postal keys.
• Bakersfield: Postal inspectors identified a collection box fishing group and conducted surveillance that resulted in the arrest of three defendants for mail theft. Searches subsequent to the arrests recovered a large volume of stolen mail and several postal keys. The investigation resulted in the indictment of five suspects.
To date, Operation Broken Mailbox resulted in at least 22 arrests, 33 searches, the recovery of ten counterfeit or stolen postal keys, and the identification of more than 2,100 victims and nearly $400,000 in losses. The U.S. Postal Inspection Service worked closely with several law enforcement agencies, including the Sacramento Police Department, The Bakersfield Police Department, the Elk Grove Police Department, the Kern County Sheriff’s Office, and the Placer County Sheriff’s Office. The work of Operation Broken Mailbox is ongoing.
Resultados Anunciados Para La Operacion Buzon Roto Enfocada En Los Robos De Correo MasivoRead the Press Release
SACRAMENTO, Calif. - El procurador federal Benjamin B. Wagner y el Jefe Adjunto Inspector Postal para las Operaciones del Campo Occidental Dr. Gregory Campbell Jr. anunciaron los resultados obtenidos hasta el momento por la Operación Buzón Roto, un esfuerzo continuo en el que participa una creciente cantidad de inspectores postales y analistas trabajando en colaboración con las fuerzas del orden público para investigar y procesar infracciones de correo robado.
La Operación Buzón comenzó luego de las quejas de un cliente postal sobre ladrones de correo que estaban atacando buzones de recolección por medio de técnicas de “pesca”, fisgoneando buzones abiertos en los vestíbulos de las oficinas postales, irrumpiendo en camiones de repartición de correo y falsificando llaves postales para poner en peligro los buzones de recolección y Unidades de Buzones de Entrega Centralizada de Barrio (NDCBUs). El Servicio de Inspección Postal ocupó en el Distrito Oriental de California a inspectores postales y analistas de todo el país con fuerte experiencia en investigación de robo de correo para que comenzaran en abril de 2013 a trabajar con inspectores postales ya asignados a Sacramento, Fresno y Bakersfield.
En menos de un año, los equipos completaron las investigaciones que llevaron a la imputación de cargos contra 21 acusados. Nueve de estos acusados ya han sido sentenciados y seis màs estàn esperando la sentencia después de declararse culpables. Adicionalmente, al menos otras seis personas han sido acusadas por fiscales en los condados de Kern y de Sacramento. La Operación Buzón Roto continúa en marcha y se esperan màs acusaciones.
“Proteger la seguridad del correo de los Estados Unidos y proteger a los clientes del correo de la pérdida de objetos valiosos e información de identidad personal es una responsabilidad importante del Servicio de Inspección Postal de los Estados Unidos y de su oficina”, dijo el procurador Wagner. “Aprecio la receptividad que el Servicio de Inspección Postal ha mostrado en entregar recursos para abordar este problema en el Central Valley. También quiero agradecer a nuestros socios de las fuerzas del orden público por trabajar de una manera tan efectiva con nosotros en este esfuerzo”.
El jefe adjunto inspector postal Campbell afirmó: “Trabajamos de cerca con la Procuraduría y con nuestros socios en la fuerza de orden público para arrestar y procesar a quienes roban correo con fines criminales. Una meta principal para el Servicio de Inspección Postal es proteger el correo de los clientes postales y asegurar que su correo se encuentre a salvo de robo”.
Entre los casos que surgieron durante la operación se encuentran los siguientes:
• Sacramento: Los inspectores postales aseguraron la imputación de cargos a tres acusados que obtuvieron correo robado tras forzar las NDCBU en Elk Grove y Sacramento. Una de las acusadas usó su trabajo como vendedora en un establecimiento para abrir cuentas fraudulentas y usar la información de cuentas que obtuvo de correo robado. Los inspectores postales también aseguraron la imputación de cargos de otros cinco acusados que forzaron en Rancho Cordova, Elverta, Rocklin, Roseville, Natomas, Rio Linda, Elkhorn y Antelope. Varias órdenes de registro resultaron en la recuperación de cientos de piezas de correo robado y llaves postales robadas.
• Fresno: Los inspectores postales llevaron a cabo el registro a un reincidente que se encontraba en libertad bajo palabra y que presuntamente està involucrado en forzar NDCBU en Fresno y Madera, y recuperaron correo robado y seis llaves postales falsificadas.
• Bakersfield: Los inspectores postales identificaron un grupo que pescaba buzones de recolección y llevaron a cabo vigilancia que dio como resultado el arresto de tres acusados por robo de correo. Los registros subsecuentes a los arrestos recuperaron un gran volumen de correo robado y varias llaves postales. La investigación resultó en la imputación de cinco sospechosos.
A la fecha, la Operación Buzón Roto dio como resultado al menos 22 arrestos, 33 registros, la recuperación de diez llaves robadas o falsificadas y la identificación de màs de 2,100 víctimas y casi $400,000 en pérdidas. El Servicio de Inspección Postal trabajó de cerca con varias agencias del orden público, incluyendo el Departamento de Policía de Sacramento, el Departamento de Polícia de Bakersfield, el Departamento de Polícia de Elk Grove, la Oficina del Alguacil del Condado de Kern y la Oficina del Alguacil del Condado de Placer. El trabajo de la Operación Buzón Roto continúa.
Postal Employee Charged with Stealing $50 Bill and A Gift CardRead the Press Release
PITTSBURGH – An employee of the United States Postal Service has been indicted by a federal grand jury in Pittsburgh on a charge of theft of mail by postal employee, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Jan. 14, named Sara M. Dewall, 32, of North Versailles, Pa.
According to the indictment presented to the court, Sara M. Dewall, while employed by the U.S. Postal Service, embezzled an envelope containing a $50 United States Note and a grocery store gift card.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The United States Postal Service/Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Made and Passed Fake Prescriptions to Obtain OxycodoneRead the Press Release
PITTSBURGH - A Pittsburgh resident has pleaded guilty in federal court to a charge of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
Brett Farrell, 31, pleaded guilty to one count before United States District Judge Maurice Cohill.
In connection with the guilty plea, the Court was advised that from June 2011 to May, 2012, Farrell, acting together with others, created fraudulent oxycodone prescriptions on his home computer. Farrell then passed these fraudulent prescriptions at area pharmacies, from whom he obtained oxycodone, which is a Schedule II controlled substance. Farrell primarily obtained this oxycodone for personal use, but he also sold small quantities of oxycodone to other addicts.
Judge Cohill scheduled sentencing for April 24, 2014, at 2:00 p.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation that led to the prosecution of Brett Farrell.
Pittsburgh Jewelry Store Owner Failed to File IRS Report of $10,000+ TransactionRead the Press Release
PITTSBURGH - A downtown Pittsburgh jeweler pleaded guilty in federal court on Tuesday to a charge of failing to file a report of currency received by non-financial business, United States Attorney David J. Hickton announced today.
Alan Kashi, 32, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that on March 13, 2012, Kashi, who was engaged in the jewelry business known as Kashi Jewelers, for the purpose of evading federal reporting requirements, failed to file an Internal Revenue Service Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, following the receipt of approximately $12,500 in currency as payment for a Breitling watch.
A civil forfeiture complaint filed in July 2013 alleged that the owners and/or employees of Kashi Jewelers conducted financial transactions involving the proceeds of drug trafficking. Pursuant to a stipulation, Alan Kashi and his family members ultimately agreed to forfeit $933,075 to the federal government, and the court issued its final order of forfeiture on Dec. 19, 2013.
“This important case highlights the use of asset forfeiture as a resource in our effort to stop the illegal flow of drugs in our communities,” said U.S. Attorney Hickton. “By freezing and forfeiting assets of a jewelry store used by drug dealers to launder their drug monies, we have taken another step to make our community safer and put about a million dollars in the federal treasury.”
Judge Diamond scheduled sentencing for May 14, 2014, at 10 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court released Kashi on an unsecured $25,000 bond.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation conducted the investigation that led to the prosecution of Alan Kashi.
Pickens Woman Found Guilty of Fema FraudRead the Press Release
Jackson, Miss - On January 10, 2014, after a four day trial, a federal jury found Idella Jones, 47, of Pickens, guilty of theft of government funds, making a false statement, filing a false claim against the United States and disaster relief fraud, announced U.S. Attorney Gregory K. Davis and James E. Ward, Special Agent in Charge of Homeland Security Office of Inspector General.
Jones was indicted for claiming and receiving FEMA disaster relief benefits as a result of tornado damage to a mobile home located in Holmes County, Mississippi. According to the evidence at trial, Jones had moved away from the mobile home in early 1998 but when a tornado destroyed it in 2010, she claimed to have been living there with three of her children. As a result of her false claim, she was paid $29,900 by FEMA to cover rent and a replacement mobile home.
“Whenever a natural disaster strikes, there will always be people willing to take advantage of victim assistance and rebuilding efforts,” said U.S. Attorney Gregory K. Davis. “Those who would try to illegally profit from disasters should know that the United States Attorney’s Office will continue its aggressive prosecution of disaster fraud.”
Homeland Security OIG Special Agent in Charge James E. Ward said: "We all suffer when federal programs are undermined by fraud. Today's conviction should send a clear message that we will continue to identify and prosecute these shameful individuals who attempt to abuse our federal resources and programs. The DHS OIG appreciates the assistance and partnership from USDA OIG and this United States Attorney's Office in pursing this case. In the future, this office will remain vigilant in seeking prosecutions in such cases to uphold the integrity of our Federal Emergency Programs, which are intended for law abiding citizens."
Jones will be sentenced on March 21, 2013 by U.S. District Judge Henry T. Wingate. She faces a maximum penalty of ten years in prison for theft of government funds, ten years for filing a false claim, five years for making a false statement and thirty years for disaster relief fraud.
This case was investigated by the U.S. Department of Homeland Security, Office of Inspector General, with assistance from the Federal Bureau of Investigation and USDA Office of Inspector General. It was prosecuted by Assistant U.S. Attorney Scott Gilbert.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Oldsmar Man Sentenced to Prison for Oxycodone DistributionRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Rick Higgins (33, Oldsmar) to two years and nine months in federal prison for conspiracy to distribute Oxycodone. In addition, he was ordered to serve a 3-year term of supervision, following his incarceration. As part of the sentence, the court also entered a money judgment in the amount of $239,000, the proceeds of his Oxycodone distribution.
Higgins pleaded guilty on October 16, 2013.
According to court documents, over a period of two to three years, Higgins used the U.S. mail to send packages of Oxycodone to a co-conspirator in the Boston, Massachusetts area. Higgins received payments of over $239,000 from cash bank deposits made in Massachusetts, into accounts that he controlled.
This case was investigated by the Drug Enforcement Administration and the Pasco County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Noveno Tribunal De Circuito De Apelaciones De Los Estados Unidos Desestima Las Demandas Interpuestas En Nombre De Los Dispensarios De MarihuanaRead the Press Release
SACRAMENTO, Calif. - En octubre y noviembre de 2011, fueron interpuestas demandas en cada uno de los cuatro distritos judiciales federales de California buscando detener la ejecución federal de la Ley de Sustancias Controladas contra los dispensarios de marihuana sobre una variedad de fundamentos. Las demandas alegaban que el gobierno federal no podría tomar medidas legales contra los dispensarios porque esa acción es una violación a la Novena y la Décima Enmienda, la Claúsula de Protección de Igualdad y la Claúsula del Comercio. Con procesos judiciales separados en cada distrito, cada uno de los cuatro jueces de los tribunales distritales emitió órdenes desestimando los casos. Los demandantes en tres de esos casos apelaron esas decisiones. Hoy, en un dictamen no publicado, el Circuito Noveno afirmó las desestimaciones de los tres casos.
La Corte del Distrito Oriental de California fue la primera corte distrital en rechazar las demandas de los dispensarios. La acción en el Distrito Oriental fue interpuesta a finales de 2011 por el Sacramento Nonprofit Collective, haciendo negocios como El Camino Wellness Center y Ryan Landers. Fue desestimada por el juez de la Corte del Distrito de Los Estados Unidos, Garland E. Burrell Jr., el 28 de febrero de 2012.
Benjamin Wagner, procurador federal del Distrito Oriental de California dijo: “Nuestra responsabilidad como procuradores es hacer cumplir la Ley de Sustancias Controladas. La decisión de hoy rechazando la demanda del dispensario es una aplicación directa del precedente existente, que solamente confirma que la Ley de Sustancias Controladas continúa estando vigente y vàlida, pese a la ley estatal”.
En la Corte del Distrito de California del Sur, la demanda interpuesta por Alternative Community Health Care Cooperative Inc, fue desestimada el 5 de marzo de 2012 por la juez de la Corte del Distrito de los Estados Unidos Dana M. Sabraw. Laura E. Duffy, la procuradora federal del Distrito del Sur de California dijo: “ La decisión del Noveno Circuito reconoce que los procuradores conservan el derecho de hacer cumplir la Ley de Sustancias Controladas. Continuaremos enfocàndonos en los intereses federales de evaluar los procesos por marihuana en el Distrito de California del Sur, y colaboraremos con nuestro estado y con socios locales para asegurar la seguridad de nuestras comunidades”.
El caso del Noveno Circuito es Sacramento Nonprofit Collective v. Titular Caso No. 12-15991.
Northwest Iowa Trio Sent to Federal Prison for Methamphetamine ConspiracyRead the Press Release
Three people who were part of a methamphetamine manufacturing ring operating in northwestern Iowa were sentenced to a combined 26 years in federal prison.
Chad Root, 42, from Waukon, Iowa, Enrique Manzo, 37, from Fredericksburg, Iowa, and Jessica Manzo, 31, from Fredericksburg, Iowa, received the prison terms after separate guilty pleas. Root pled guilty on August 19, 2013 to conspiracy to manufacture methamphetamine after a prior drug felony conviction, and possession of firearms as a felon. Enrique and Jessica Manzo each pled guilty on October 4, 2013 to conspiracy to possess and distribute pseudoephedrine knowing that it would be used to manufacture methamphetamine.
Court records, along with information disclosed at their guilty plea and sentencing hearings, indicate that Root admitted he and others agreed to manufacture methamphetamine between April 2012 and April 2013. Root also admitted he possessed ten firearms, including one with an obliterated serial number. Root has multiple prior felony convictions. Enrique and Jessica Manzo each admitted that, over approximately the same time period, they obtained pseudoephedrine from other people and provided it for the manufacture of methamphetamine.
All three individuals were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Enrique Manzo was sentenced on November 26, 2013 to 100 months’ imprisonment. Jessica Manzo was sentenced on January 6, 2014 to 81 months’ imprisonment. Root was sentenced on January 7, 2014 to 141 months’ imprisonment. Each was ordered to pay a special assessment of $100. Enrique and Jessica Manzo must each serve a 3-year term of supervised release after the prison term. Root is required to serve an 8-year term of supervised release. There is no parole in the federal system.
All three are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The cases were prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by the Iowa Division of Narcotics Enforcement, the Iowa State Patrol, the Decorah Police Department, the Monona Police Department, the Waukon Police Department, the Postville Police Department, and the Allamakee County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number for Chad Root is 13-CR-1007. The case file number for Enrique and Jessica Manzo is 13-CR-2019.
Ninth Circuit Court of Appeals Affirms Dismissal of Lawsuits Filed on Behalf of Marijuana DispensariesRead the Press Release
SACRAMENTO, Calif. — In October and November 2011, lawsuits were filed in each of the four California federal judicial districts seeking to halt federal enforcement of the Controlled Substances Act against marijuana dispensaries on a variety of grounds. The suits claimed that the federal government could not take any legal action against dispensaries because such action was a violation of the Ninth and Tenth Amendments, the Equal Protection Clause and the Commerce Clause. Following separate proceedings in each district, four different district court judges issued orders dismissing the cases. The plaintiffs in three of those cases appealed those decisions. Today, in an unpublished opinion, the Ninth Circuit affirmed the dismissals in all three cases.
The United States Court for the Eastern District of California was the first district court to reject a dispensary’s lawsuit. The Eastern District action was filed at the end of 2011 by Sacramento Nonprofit Collective, doing business as El Camino Wellness Center, and Ryan Landers. It was dismissed by U.S. District Court Judge Garland E. Burrell Jr. on Feb. 28, 2012.
Benjamin Wagner, the United States Attorney for the Eastern District of California, said: “Our responsibility as U.S. Attorneys is to enforce the Controlled Substances Act. Today’s decision rejecting the dispensary’s lawsuit is a straightforward application of existing precedent, which merely confirms that the CSA continues to be in full force and effect, regardless of state law.”
In the United States Court for the Southern District of California, the lawsuit filed by Alternative Community Health Care Cooperative Inc. was dismissed on March 5, 2012 by U.S. District Court Judge Dana M. Sabraw. Laura E. Duffy, the United States Attorney for the Southern District of California said: “The Ninth Circuit’s decision recognizes that U.S. Attorneys retain the right to enforce the CSA. We will continue to focus on federal interests in evaluating marijuana prosecutions in the Southern District of California, and will collaborate with our state and local partners to ensure the safety of our communities.”
The Ninth Circuit case is Sacramento Nonprofit Collective v. Holder, Case No. 12-15991.
Nampa Man Pleads Guilty to Drug ChargeRead the Press Release
BOISE – Anthony Jones, 29, of Nampa, Idaho, pleaded guilty today in United States District Court to distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Jones admitted that on November 6, 2012, he sold methamphetamine to a confidential informant.
The charge is punishable by a minimum of five years and up to 40 years in prison, a maximum fine of $5 million, and at least four years of supervised release. Jones is set for sentencing on April 7, 2014, before U.S. District Judge Edward J. Lodge, at the federal courthouse in Boise.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and the Idaho Department of Corrections.
The Organized Crime and Drug Enforcement Task Force (OCDETF) also contributed to the investigation. Federal partners include the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Monmouth County, N.J., Man Charged with Possession of Child PornographyRead the Press Release
TRENTON, N.J. – Special agents of the FBI arrested a Monmouth County man at his home this morning after discovering alleged images of child sexual abuse on his computer, U.S. Attorney Paul J. Fishman announced.
Layne Bracht, 31, of Highlands, N.J., is charged by complaint with one count of possessing child pornography. He made his initial court appearance today before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court and was remanded without bail.
According to documents filed in this case and statements made in court:
On Oct. 28, 2013, Bracht allegedly distributed on the Internet via peer-to-peer file sharing software, through which other users had access, a video and images depicting child sexual abuse. Special agents of the FBI executed a search warrant this morning at his residence in Highlands, seizing digital evidence that contained numerous videos and images depicting child sexual abuse, including material involving prepubescent minors and sadistic or masochistic conduct. The digital evidence seized included three files previously downloaded from Bracht by law enforcement agents working in an undercover capacity on the peer-to-peer network.
In 2006, Bracht was arrested and charged with possession of child pornography, a charge to which he subsequently pleaded guilty. On April 2, 2008, U.S. District Judge Joseph E. Irenas sentenced Bracht to 30 months in prison to be followed by five years of supervised release. As a previously convicted sex offender, Bracht faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of 20 years in prison and a $250,000 fine if convicted of the possession offense.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Grammicioni, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
14-019Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, Trenton
Bracht Complaint
Michigan Man Charged for Possessing 900 Oxycodone PillsRead the Press Release
A federal grand jury returned a one-count indictment charging James E. Wilson, age 42, of Rochester, Michigan, with possession with the intent to distribute approximately 900 pills of Oxycodone, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Wilson was arrested on December 9, 2013 by the Stark Metro Drug Task Force during the execution of a search warrant at Wilson’s hotel room. The search warrant yielded approximately 900 pills of Oxycodone which Wilson had brought to Ohio for sale, according to the indictment.
The indictment resulted from an investigation conducted by the DEA assisted by the Stark Metro Drug Task Force, Jackson Township Police Department, Canton Police Department, Stark County Sheriff’s Office, and the Summit Count Sheriff’s Office Drug Unit. The case is being prosecuted by Assistant U.S. Attorney Teresa Dirksen.
If convicted, Wilson’s sentence will be determined by the Court after review of factors unique to this case, including his prior criminal record, if any, his role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Mexican National Pleads Guilty to Unlawful Possession of FirearmRead the Press Release
POCATELLO — Rigoberto Torres-Perez, 30, of Idaho Falls, Idaho, pleaded guilty today to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Torres-Perez was indicted by a federal grand jury in Pocatello on June 25, 2013.
According to the plea agreement, police officers encountered Torres-Perez on November 4, 2012, during a search of another individual’s residence in Idaho Falls. Torres-Perez was in possession of a 9 millimeter pistol with an obliterated serial number. Torres-Perez is prohibited from possessing firearms due to a drug conviction in Arizona in 2006.
The charge of unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for April 10, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Idaho Falls Police Department.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Meth Lab Fire Sends Dubuque Man to Federal PrisonRead the Press Release
A man who started a fire while trying to manufacture methamphetamine was sentenced on January 13, 2014 to 19 ½ years in federal prison.
Cory Cole, 47, from Dubuque, Iowa, received the prison term after an October 9, 2013 guilty plea to the attempted manufacture of methamphetamine within 1,000 feet of a school.
Information disclosed at the guilty plea and sentencing indicates that Cole admitted he attempted to cook methamphetamine on May 30, 2013, at a Dubuque residence. The methamphetamine lab caused a fire to erupt in the house. Two other individuals—neither of whom were involved in the methamphetamine activity—were present inside the residence. The residence was located within 1,000 feet of Fulton Elementary School.
Cole was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Cole was sentenced to 234 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
Cole is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by the Dubuque Drug Task Force, the Dubuque Police Department, and the Dubuque Fire Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-1015.Malden Man Indicted for Tax CrimesRead the Press Release
BOSTON – A Malden man was charged today with a number of tax crimes stemming from him filing tax returns in the name of a dead relative.
Mark R. Fisette, 53, was indicted for tax evasion and four counts of filing false tax documents. The indictment alleges that Fisette worked as a freelance photographer for various weekly and daily newspapers, and had not timely filed or paid his income taxes. When state and federal taxing authorities began collection efforts, including seizing a paycheck, Fisette provided the newspaper distributor with the name and Social Security number of a deceased relative for future payments for Fisette’s photography services. It is also alleged that Fisette filed false income tax returns and a false financial statement which did not report the income he received in the dead relative’s name.
If convicted, Fisette faces a maximum sentence of five years in prison and three years of supervised release on the charge of tax evasion, and three years in prison and one year of supervised release for the charge of filing false tax documents. Both carry a maximum fine of $250,000 or twice the gain or loss, whichever is greater.United States Attorney Carmen M. Ortiz and John J. Collins, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Sandra S. Bower of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Magnolia Man Sentenced in Firearms ConspiracyRead the Press Release
HOUSTON – Daniel Wade Holler, 27, has been sentenced to federal prison for conspiracy to make false written statements to licensed dealers in connection with the acquisition of firearms and being a felon in possession of a firearm, announced United States Attorney Kenneth Magidson. Holler, of Magnolia, pleaded guilty June 28, 2013.
Today, U.S. District Judge Gray Miller ordered Holler to serve a total of 121 months in federal prison to be immediately followed by three years of supervised release.
In September 2011, authorities began to connect several firearms purchases by multiple individuals to Holler. His vehicle had been used during the purchases and ultimately led to the discovery of the overall conspiracy. Some of the co-conspirators had been seen on store surveillances and by witnesses arriving and leaving in a red car. The authorities were able to trace the car back to Holler and connected him to the purchase of 55 firearms by multiple individuals.
Holler’s role in the conspiracy included directing the co-defendants to falsify statements intended to deceive the federal firearms licensees. Each co-conspirator was paid approximately $100-150 dollars per firearm bought and then turned them over to an individual who would send them to Mexico. All nine co-conspirators have pleaded guilty to their roles in this conspiracy.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation and has played an integral role in combatting firearms trafficking between the United States and Mexico.
This case was prosecuted by Assistant United States Attorney Megan J. Paulson.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Louisville Man Sentenced to 20 Years in Prison for Online Enticement of A Minor and Production of Child PornographyRead the Press Release
LOUISVILLE, Ky. – A Louisville Man who pleaded guilty to violating federal child exploitation laws, was sentenced to 20 years in prison, followed by 12 years of supervised release this week, by Senior U.S. District Court Judge Charles R. Simpson, III, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Marvin Duane Monk, age 46, Monk pleaded guilty to a two-count Indictment returned by a federal grand jury on October 2, 2012. Monk was previously charged in a September 6, 2012, Criminal Complaint.
According to court records, on August 19, 2012, Monk’s spouse discovered that he had been engaging in sexual activities with her minor daughter in their Louisville residence. Monk left the residence in Louisville, and moved to a hotel in Clark County, Indiana. Shortly thereafter, he took the minor from Louisville to Indiana with him. Not knowing where her daughter was, the mother contacted the Louisville Metro Police Department and filed a missing person report. She also filed for, and received, an Emergency Protection Order (EPO) against Monk in Jefferson County, Kentucky. The EPO included an order that Monk have no contact with either his wife or the minor stepdaughter.
Two days later, the mother learned that Monk and her daughter were staying at a motel in Clarksville, Indiana. Clark County Sheriff’s deputies were dispatched to the motel where they found Monk and the minor. Monk subsequently admitted to law enforcement officers that he brought his stepdaughter to Indiana from her home in Louisville. Monk also admitted to engaging in a sexual relationship with the minor, and to recording the sexual activity. The Clark County Sheriff’s Department executed a search warrant on the motel room. Evidence seized included a video recorder, video tapes, and cellular telephones.
Assistant U. S. Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department Crimes Against Children Unit, Louisville Division of the FBI, and Clark County (Indiana) Sheriff’s Department, conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab.
Louisiana Man Sentenced for East Texas Drug Trafficking ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 22-year-old Shreveport, Louisiana man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Brandon Johnson pleaded guilty on Nov. 6, 2013, to possession with intent to distribute approximately 4.5 kilograms of marijuana and was sentenced to 10 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Mar. 19, 2013, Johnson was stopped by a Texas DPS Trooper in the eastbound lane of IH-20 in Van Zandt County, Texas for speeding. During the course of the stop the officer detected the odor of marijuana coming from inside Johnson’s car and detained Johnson in order to conduct a search. The trooper found 10 bundles of marijuana that weighed approximately one pound each in two boxes on the back seat floorboard. The trooper also found a loaded .40 caliber, semi-automatic pistol on the driver’s side floorboard. As part of his sentence, Johnson must forfeit the seized weapon and ammunition to the United States Attorney’s Office. Johnson must also pay a $10,000.00 judgment to be levied against him personally in order to forfeit money he made selling marijuana.
This case was investigated by the Texas Department of Public Safety, Highway Patrol, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
Los Angeles-Area Gang Member Pleads Guilty to Sex Trafficking of Minors by ForceRead the Press Release
Lynwood Man Becomes Eighth Convicted of Sex Trafficking Charges for Prostituting Teenage Girls Recruited from Inland Empire Schools
Conviction is the Latest in a String of Human Trafficking Prosecutions
Recently Brought by the United States Attorney’s OfficeRIVERSIDE, California – On the day a jury was expected to hear opening statements in his trial, a Lynwood gang member pleaded guilty on Tuesday to federal sex trafficking charges, admitting that he used force, fraud and coercion to recruit teen-age girls who worked as prostitutes across Southern California.
Paul Edward Bell, 29, an alleged member of the Rolling 60s Crips street gang, pleaded guilty on Monday pursuant to a plea agreement that calls for a sentence of 30 years in federal prison.
Bell, who used multiple monikers, including J-Roc, pleaded guilty before United States District Judge Virginia A. Phillips, who is scheduled to determine whether to accept the 30 year binding plea agreement and sentence the defendant to that term of imprisonment on March 31, 2014.
Bell is the eighth and final defendant convicted after a federal grand jury returned an indictment in August 2012 that resulted from an investigation by the Inland Child Exploitation/Prostitution Task Force, which is comprised of agents, deputies and officers with the Federal Bureau of Investigation, the Riverside County Sheriff’s Department, the Riverside Police Department, the San Bernardino Police Department, the Pomona Police Department, and the Ontario Police Department.
In court documents previously filed in this case, prosecutors said that Bell and his co-defendants used minors as prostitutes for their own financial gain. They preyed on vulnerable victims, convinced them to become prostitutes, and verbally and physically abused them when they did not perform as required, according to various court documents.
In a plea agreement filed yesterday, Bell specifically admitted that in 2011 he recruited and harbored four minor victims (ages 15 to 17) that he forced to work as prostitutes in Lynwood and Compton. Bell admitted physically abusing one victim “for not performing as a prostitute and for acting up,” according to the plea agreement.
“Sex trafficking is an abominable crime that condemns its victims to physical and psychological trauma, hardship and abuse,” said United States Attorney André Birotte Jr. "Mr. Bell and his cohorts coldly and brutally victimized young women and juveniles, subjecting them to treatment that can only be described as inhumane. Bell exploited his victims for profit and now he will be held accountable and punished for his predatory conduct."
“The defendants in this case lured minor victims from school with false promises of a glamorous lifestyle only to sexually exploit and abuse them in furtherance of the gang, and for their own financial gain,” said Bill Lewis, the Assistant Director of the FBI’s Los Angeles Field Office. “January is Human Trafficking Awareness Month and today’s announcement should send a message to those with similar intentions of targeting minors that the FBI and our task force partners are committed to investigating allegations of sex trafficking and sending them to prison.”
The other defendants in this case who previously pleaded guilty are:
Samuel Rogers, also known as Bone, 23, of Moreno Valley, another alleged member of the Rolling 60s, who pleaded guilty to sex trafficking of a minor;
Gary Rogers, who used monikers such as G-Man, 25, of Moreno Valley, another alleged member of the street gang and Samuel Rogers’ brother, who pleaded guilty to conspiracy to engage in sex trafficking; Christopher Weldon, who is also known by several names, including C-Roc, 24, of Compton, the fourth alleged Rolling 60s member named in the indictment and Bell’s half-brother, who pleaded guilty to one count of conspiracy to engage in sex trafficking and received a six-year prison sentence;
Javiya Brooks, who is also known as Shady Blue, 21, of Lynwood, who was the lead prostitute for Bell, who pleaded guilty to one count of conspiracy to engage in sex trafficking;
Kimberly Alberti, 20, of Riverside, who was the lead prostitute for Samuel Rogers, who pleaded guilty to one count of conspiracy to engage in sex trafficking;
Kristy Harrell, 21, of Riverside, who was Gary Rogers’ lead prostitute, who pleaded guilty to interstate transportation in the aid of racketeering; and
Su Yan, 31, of Rosemead, a Chinese national who assisted Bell with his prostitution business and pleaded guilty to interstate transportation in the aid of racketeering.
The defendants who have not been sentenced will also be sentenced later this year by Judge Phillips.
The investigation in this case began in January of 2011, when the Riverside County Sheriff’s Department learned that teenage girls attending schools in the Inland Empire were being recruited to work as prostitutes. The investigation later revealed that Alberti attended one of the schools and recruited underage females by “grooming them” -- or gaining their trust and telling them that they could make large sums of money by working as prostitutes for Alberti's pimp. The girls who were successfully recruited to work as prostitutes were brought to the Los Angeles area, where they were housed by Bell and the Rogers brothers at hotels on and near Long Beach Boulevard or at Bell's apartment.
The United States Attorney’s Office worked with the Justice Department’s Child Exploitation and Obscenity Section to prosecute this case.
The case being announced today was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Fighting human trafficking has been, and will remain, a priority for the Central District of California. The convictions announced today are the latest in a string of human trafficking cases that the United States Attorney’s Office, working in partnership with federal and local law enforcement, has brought in the past year. Over the past year, the United States Attorney’s Office has also prosecuted the following matters, among others:
United States v. Letha Montemayor Tucker, CR No. 13-78-ABC. On March 12, 2013, a federal grand jury returned a first superseding indictment charging Letha Montemayor Tucker with conspiracy to produce child pornography, production of child pornography, conspiracy to engage in sex trafficking of a child, and sex trafficking of a child. Tucker was arrested last year after tips from members of the public to the U.S. Immigration and Customs Enforcement’s Homeland Security Investigation agency helped identify her as a woman allegedly seen molesting a pre-teen victim in a series of child photography images that had been widely-distributed over the Internet. The jury trial in this case is set for April 8, 2014. Tucker faces a mandatory minimum sentence of 15 years and a statutory maximum of life imprisonment if convicted.
United States v. Roshaun Nakia Porter and Marquis Monte Horn, CR No. 12-97(A)-JLS. On March 27, 2013, a federal grand jury returned a first superseding indictment charging Roshaun Nakia Porter and Marquis Monte Horn with conspiring to engage in sex trafficking and sex trafficking by force, fraud, and coercion. According to court documents filed in this case, Horn allegedly recruited victims to work in a prostitution organization through a website and by claiming that he and Porter were running an upscale escort service in which women could make $500 per day. Prosecutors allege that this was merely a ruse; and that Horn, Porter, and others used various coercive tactics -- including developing purportedly romantic relationships with the victims, falsely promising financial assistance to the victims and their families, falsely promising to help obtain lawful immigration status in the United States for their victims, and isolating some of the victims from their families and friends -- all to induce these victims into engaging in prostitution. Both Horn and Porter face a mandatory minimum sentence of 15 years and a statutory maximum of life imprisonment if convicted. Their trial is set for February 18, 2014.
United States v. William Earl Flavors, CR No. 13-143-JLS. On August 7, 2013, a federal grand jury returned an indictment charging William Earl Flavors, aka “Andre,” with sex trafficking by force, fraud, or coercion, and transportation in interstate commerce for purposes of prostitution. On December 5, 2013, Flavors pleaded guilty to transportation in interstate commerce for purposes of prostitution, admitting, among other things, that he transported his victims between Long Beach to Las Vegas, forced or coerced them to work as prostitutes in Las Vegas, and used physical abuse and threats of additional physical abuse to make one of his victims work for him as a prostitute. Flavors’ conviction in this case marks the second time Flavors has been convicted in federal court of trafficking women across state lines and forcing them to work as prostitutes. Pursuant to the parties’ plea agreement, Flavors and the government agreed to recommend the statutory maximum sentence of 10 years’ imprisonment. Sentencing is set for May 9, 2014.
United States v. Joshua Jerome Davis & Sharilyn Kae Anderson, CR No. 13-589-CAS. On August 22, 2013, a federal grand jury returned an indictment charging Joshua Jerome Davis with sex trafficking of a child, coercion and enticement to travel in interstate commerce to engage in prostitution, and transportation of a child for purposes of prostitution. As detailed in the criminal complaint filed in this case, Davis is accused of prostituting a 16-year-old girl in Southern California and transporting her across state lines to engage in commercial sex in Las Vegas casinos. The Department of Homeland Security and the Long Beach Police Department began investigating this case after the victim’s father reported her missing and discovered that his daughter was being featured in an on-line prostitution ad. The indictment also charged Davis’ mother, Sharilyn Kae Anderson, with aiding and abetting the child sex trafficking offenses committed by her son. A jury trial in this case is set for April 22, 2014. Both defendants face a mandatory minimum sentence of 15 years and a statutory maximum of life imprisonment if convicted.
United States v. Tabitha Samaria Walls and Kenyati Jakeen Rahh-Potts, CR No. 13-637-MWF. On September 4, 2013, a federal grand jury returned an indictment charging Tabitha Samaria Walls and Kenyati Jakeen Rahh-Potts with sex trafficking of a child and transportation of a minor for purposes of prostitution. According to the criminal complaint filed in this matter, Walls and Rahh-Potts allegedly forced the child victim in this case to accompany them from Las Vegas to California, where they forced her to engage in acts of prostitution in Los Angeles, Hollywood, Pomona, and Ontario. It is further alleged in the criminal complaint that the child victim was forced to surrender all of the money that she earned as a prostitute to Walls and Rahh-Potts, that Rahh-Potts beat her on one occasion when she lost the money she earned as a prostitute, and that Rahh-Potts told two individuals who attempted to rescue the child victim from Walls and Rahh-Potts that he had killed the child victim and left her body on the side of the road along the Interstate 15 freeway. The trial in this case is scheduled for June 17, 2014. Both Walls and Rahh-Potts face a mandatory minimum sentence of 15 years and a statutory maximum of life imprisonment if convicted.
United States v. Curtis Maurice Canady, Jr., CR No. 13-165-DOC. On September 4, 2013, a federal grand jury returned an indictment charging Curtis Maurice Canady Jr. with sex trafficking of children and transportation of children for purposes of prostitution. Canady pleaded guilty on November 19, 2013, to transportation of children for purposes of prostitution. As detailed in court documents filed in this case, Canady drove his victims, including two girls who were 15 and 16, from a motel in Los Angeles to locations in Anaheim where he had them work as prostitutes; transported his victims, including a minor victim, to Las Vegas for the purpose of engaging in prostitution; and engaged in on-line advertising aimed at attracting customers for his victims. At sentencing, Canady faces a statutory maximum sentence of life imprisonment.
United States v. Vincent Earl Jordan, 13-657(A)-BRO. On October 29, 2013, a federal grand jury returned a first superseding indictment charging Vincent Earl Jordan, aka “Vinnie Mac,” with sex trafficking of a minor, sexual exploitation of a child, possession of child pornography, transportation of a child for purposes of prostitution, and coercion and enticement to travel in interstate commerce to engage in prostitution. As detailed in court documents filed in this matter, this case began when Long Beach Police Department detectives encountered a 17-year-old girl engaged in acts of prostitution who had a moniker, “Vinnie,” tattooed across her stomach. The documents allege that, after this child victim identified Jordan as her pimp, the police found a second victim who also alleged that Jordan had threatened and coerced her to travel from Texas to California to work as a prostitute. The indictment further alleges that Jordan produced and possessed child pornography of his 17-year-old victim. The jury trial in this case is set for February 25, 2014. Jordan faces a statutory minimum sentence of 15 years and a statutory maximum of life imprisonment if convicted.
United States v. Samuel Gonzalez, CR No.11-193-AG. On November 15, 2013, Samuel Gonzalez pleaded guilty pursuant to a plea agreement to arranging and facilitating travel of minors for prostitution. As detailed in court documents filed in this case, Gonzalez lured three teenage girls from Texas to California under the guise that he wanted to take them “to the beach.” Once in California, Gonzalez induced these minor victims to work as prostitutes, until the family of one of the teenage victims reported the victims missing and Gonzalez was apprehended. As a result of this guilty plea, Gonzalez faces a maximum sentence of 30 years’ imprisonment. Sentencing is set for February 24, 2014.
United States v. Eric Lamar Wells and Tonisha Alecia Moore, CR No. 12-120-CJC. On May 23, 2012, a federal grand jury returned an indictment charging Eric Lamar Wells and Tonisha Alecia Moore with conspiracy to engage in sex trafficking of minors, sex trafficking of minors, and transportation of minors into prostitution. As detailed in court documents filed in this case, Wells recruited a 14-year-old girl and a 17-year-old girl to work as prostitutes for him. Wells and Moore then transported these girls from Las Vegas, Nevada, to Phoenix, California, and finally to Anaheim, California, so that they could engage in commercial sex acts and give the money they made to Wells. Wells also posted on-line ads to find men who would pay to engage in sex acts with the minor victims. Following their guilty pleas, on June 26, 2013, the court sentenced Wells to 10 years’ imprisonment and Moore to 70 months’ imprisonment.
United States v. Kawaum Marquez Scott and Nekeyia Necole Weatherspoon, CR No. 13-116-VAP. On November 27, 2013, a federal grand jury returned an indictment charging defendants Kawaum Marquez Scott and Nekeyia Necole Weatherspoon with conspiracy to engage in sex trafficking of a child and sex trafficking of a child. Jury trial is set for April 29, 2014. In the criminal complaint filed in this case, it is alleged that Scott and Weatherspoon befriended a 14-year-old victim who lived at a residence located on the same property where Scott and Weatherspoon lived; forced this 14-year-old victim to engage in prostitution, pocketing for themselves all of the money this victim made; and utilized the Internet to advertise this child victim as a prostitute. Defendants face a statutory minimum sentence of 15 years and a statutory maximum of life imprisonment if convicted.
United States v. Ralph Allen Jackson, Jr., CR No. 13-476(A)-BRO. On December 16, 2013, Ralph Allen Jackson, Jr., 41, also known as “Mac Wimp,” pleaded guilty to conspiracy to engage in sex trafficking of a minor. In his plea agreement, Jackson admitted that he trafficked four victims – including a 17-year-old girl – in the Long Beach area in June 2013. As detailed in court documents filed in this matter, Jackson drove his victims to known areas for prostitution, instructed them to engage in sex acts for money, gave them quotas that they were required to meet each day, and engaged in acts of coercion to insure that his victims continued to work for him as prostitutes. When law enforcement first encountered the minor victim in this case, she was branded with the words “Mac Wimp’s bitch” tattooed across her chest. Pursuant to the terms of the plea agreement, Jackson has agreed to recommend that he serve a sentence of no less than five years’ imprisonment, and the government agreed to recommend a sentence of no more than ten years’ imprisonment. Sentencing is set for March 10, 2014.
An indictment or complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
January 2014 has been proclaimed National Slavery and Human Trafficking Prevention Month by President Obama (see: http://www.whitehouse.gov/the-press-office/2013/12/31/presidential-proclamation-national-slavery-and-human-trafficking-prevent). In addition to efforts to investigate and prosecute human trafficking violations, law enforcement has also been proactive with respect to outreach, education and prevention efforts in local communities. To that end, on Saturday, January 11, the United States Attorney’s Office for the Central District of California and the Los Angeles Field Office of the FBI co-hosted an Anti-Human Trafficking Summit to assist local prevention efforts and help raise awareness about the many facets of human trafficking. The all-day Summit was held at the National Council of Jewish Woman/Los Angeles (NCJWLA) in Los Angeles and featured presenters and participants from federal and local law enforcement, as well as local community stakeholders and victims’ services organizations. Presenters included prosecutors, investigators, subject matter experts, victims’ advocates and victims who were survivors of human trafficking. United States Attorney André Birotte Jr. and FBI Assistant Director in Charge Bill Lewis also participated. Volunteers from the Expediente Rojo Project, Inc. (http://www.expedienterojo.org/) and NCJWLA assisted in all facets of the Summit.
Release No. 14-004
Local Woman Indicted for Threat Against PresidentRead the Press Release
HOUSTON – Denise O’Neal, aka Teddy Bear Paradise, was been indicted by a federal grand jury for threatening to injure and murder President Obama, announced United States Attorney Kenneth Magidson.
O’Neal was initially arrested on Dec. 26, 2013, upon the filing of a criminal complaint. She subsequently appeared before U.S. Magistrate Judge Nancy Johnson who ordered her held without bond pending further criminal proceedings. She is expected to make an initial appearance on the indictment in the near future.
The indictment alleges O’Neal, a 57-year-old resident of Houston, mailed a letter to the President that contained a threat, specifically, that she was going to travel to Washington D.C. to murder him.
If convicted, O’Neal faces up to five years in federal prison and a possible $250,000 fine.
The case is being investigated by the Secret Service and is prosecuted by Assistant United States Attorney Julie N. Searle.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Knox County Man Sentenced and Ordered to Pay More Than $800,000 Restitution for Transporting Stolen Property Across State LinesRead the Press Release
Cape Girardeau, MO - The United States Attorney's Office announced today that a Knox County, Missouri, man was sentenced to federal prison for three charges involving transporting stolen goods.
CHARLES WILLIAM TAGUE of Hurdland, Missouri, was sentenced to 14 months imprisonment on one felony count of conspiracy to transport stolen property across state lines and two felony counts of interstate transportation of stolen goods. He was also ordered to pay a total of $801,928.07 restitution. Upon completion of the prison sentence, he will be placed on federal supervised release for a period of three years. Tague appeared before U.S. District Judge John A. Ross on Wednesday, January 15, 2014, in Cape Girardeau.
Previously with his plea, Tague admitted that on April 26, 2010, Roger L. Smith, the owner of Yield Plus, Inc., a plant food company in Scott City, Missouri, realized that someone had stolen over 8,000 gallons of liquid plant food from his business over the weekend. Smith contacted the Scott County Sheriff’s Department and an investigation was initiated.
Yield Plus, Inc., is a company that makes liquid plant food that is shipped in interstate commerce to many different states. The investigation revealed that the plant manager, John A. Greenlee, was filling tanker trucks owned by Tague at night and on weekends in exchange for money. Tague, who owned a trucking company, would in turn sell the stolen liquid plant food to mostly out-of-state customers. Tague collected a total of nearly $802,000 from those customers for the stolen liquid plant food and paid Greenlee roughly $14,000.
Greenlee was previously sentenced to a term of 27 months imprisonment and ordered to pay restitution in the amount of $283,672.
The Federal Bureau of Investigation and the Missouri State Highway Patrol are commended for their efforts to prosecute this case. Assistant United States Attorneys Abbie Crites-Leoni and Morley Swingle handled the prosecution for the Government.
Jury Convicts KC Man of PCP Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today of multiple counts related to possessing PCP with the intent to distribute and to illegally possessing firearms.
Jerry D. Scott, 41, of Kansas City, was found guilty of two counts of possessing PCP with the intent to distribute, one count of possessing PCP, two counts of being a felon in possession of a firearm and one count of possessing a firearm in furtherance of drug-trafficking crimes.
Law enforcement officers began conducting surveillance on Scott’s residence in March 2012 after receiving information from a confidential source that he was selling PCP and carrying firearms. At the time, Scott had five prior felony convictions, including possessing PCP and carrying a firearm.
A police detective saw Scott, who did not have a valid driver’s license, leave the house with another person and get into his black Lincoln Navigator, which was parked in front of the residence. When Scott started driving his vehicle, police officers conducted a traffic stop. Scott and his passenger, Candace I. Brown, both had outstanding Kansas City municipal warrants and were arrested.
An inventory search of the vehicle prior to towing was conducted and officers discovered PCP and a Jimenez 9mm handgun with no serial number in the center console of the vehicle. Officers also found a loaded Smith & Wesson 9mm handgun under the driver’s side floor mat.
Scott was also in possession of PCP on May 12, 2010. A Kansas City police officer drove past Scott’s parked vehicle and smelled the odor of PCP and marijuana. Officers saw a loaded Glock 10mm pistol in the driver’s side door pocket and Scott was placed under arrest. During an inventory search of the vehicle prior to towing, officers discovered a bottle of PCP in the center console.
On Aug. 16, 2010, Scott sold three PCP-dipped cigarettes to a confidential informant in a controlled undercover operation. Deputies from the Jackson County Sheriff’s Department executed a search warrant at Scott’s residence on Aug. 20, 2013, and found three bottles that contained PCP as well as drug paraphernalia.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three hours before returning the guilty verdicts, ending a trial that began Monday, Jan. 13, 2014.
Under federal statutes, Scott is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney William L. Meiners and Special Assistant U.S. Attorney Ann Booton. It was investigated by the Kansas City, Mo., Police Department, the Jackson County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury Convicts Georgia Woman for Stolen Identity Tax Refund FraudRead the Press Release
A jury in the Middle District of Georgia convicted Kimberly Michelle Banks on Jan. 14, 2014, of conspiring to file false federal income tax returns in the names of stolen identities, the Justice Department and Internal Revenue Service (IRS) announced today. Banks was also convicted of wire fraud, aggravated identity theft and theft of government money.
According to evidence introduced at trial, Banks obtained the names and Social Security numbers of nursing home patients from her employer and conspired with Donalene Mosely, Arneshia Austin and others to use the stolen identifying information to steal money from the government. Mosely and Austin each pleaded guilty to related charges before trial. Several victims testified that they did not consent to the use of their names and Social Security numbers on these tax returns and testified that they did not receive any money from refunds generated from the false tax returns filed with the IRS. The tax returns at issue were filed from two internet protocol addresses assigned to Banks, and the fraudulent tax refunds were deposited onto prepaid debit cards mailed to addresses belonging to Banks and others, including Mosely and Austin. The evidence also revealed that Banks and others used the stolen proceeds to make payments on their car loans, to throw a party and to buy products online.
The court has not yet scheduled sentencing for Banks, Mosely or Austin. Banks faces a statutory minimum of two years in prison for aggravated identity theft, a statutory maximum of 20 years in prison for each wire fraud count and 10 years in prison for each theft of government money count. Banks, Mosely and Austin each face a statutory maximum of five years in prison for the conspiracy count.
This case was investigated by IRS-Criminal Investigation and is being prosecuted by Trial Attorneys Justin Gelfand, Kimberly Shartar and Alexander Effendi for the Tax Division. Assistant Attorney General Kathryn Keneally thanked the U.S. Attorney’s Office in the Middle District of Georgia and the Crisp County Sheriff’s Office for their assistance with this prosecution.
Jackson County Man Charged with Failing to Register as Sex OffenderRead the Press Release
On September 4, 2013, Willie Joe Strayhorn, a/k/a “Jo Jo,” 47, of Murphysboro, was indicted in a one-count indictment charging Failure to Register as a Sex Offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between November 1, 2010, and September 4, 2013, in Jackson County. Strayhorn, who was arrested in Tennessee, made his initial appearance in federal court in Benton, on January 14, 2014. The offense carries a penalty of up to 10 years’ imprisonment, to be followed by a term of supervised release from 5 years to life, and a fine of $250,000. Strayhorn is currently being held without bond pending a March 17, 2014, jury trial.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The case was investigated by the United States Marshals Service. The U.S. Marshals Service is the nation’s oldest federal law enforcement agency, and serves as the nation’s primary fugitive hunting organization. In addition, the U.S. Marshals have three principal responsibilities under the Adam Walsh Child Protection and Safety Act: (1) to assist state, local, tribal, and territorial authorities in the location and apprehension of non-compliant and fugitive sex offenders; (2) to investigate violations of the Act for federal prosecution; and (3) to assist in the identification and location of sex offenders relocated as a result of a major disaster. The Murphysboro Police Department and the Dyersburg, Tennessee, Police Department also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Investment Manager Sentenced to 188 Months for Investment Fraud SchemeRead the Press Release
Earlier today, Aleksander Efrosman, the investment manager of Century Maxim Fund, Inc. and AJR Capital, Inc., was sentenced to a term of imprisonment of 188 months following his conviction for wire fraud. Efrosman, who fled the United States, was extradited from Poland and pleaded guilty on October 18, 2012. In addition to the prison term, Efrosman was ordered to pay restitution of approximately $4 million.
The sentence was announced by Loretta E. Lynch, United Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Philip R. Bartlett, U.S. Postal Inspector-in-Charge, New York Division.
“This case proves the old adage: ‘you can run, but you cannot hide.’ Aleksander Efrosman stole over $5 million from unsuspecting investors and fled the country, then engaged in a globetrotting effort to escape justice. But the coordinated efforts of law enforcement resulted in his capture. Today, Efrosman has finally been held to account for his betrayal of his clients’ trust,” stated United States Attorney Lynch. “As proved again today, this office will relentlessly pursue and prosecute the perpetrators of investment fraud schemes.” Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation and the Postal Inspection Service for their assistance in this case.
From January 2004 through June 2005, working from offices in Brooklyn and Staten Island, Efrosman defrauded investors by soliciting investments purportedly for the purpose of trading in the stock market and the foreign currency exchange market. Efrosman falsely told investors that he had a history of profitable trading and that the investments would be protected by a "stop-loss" mechanism which ensured that no trade lost more than 3%. Based on these misrepresentations, Efrosman raked in over $5 million from more than 100 investors. Efrosman did not invest the funds as promised, but instead used the funds for his personal benefit, including gambling over $3 million at the Foxwoods casino.
Efrosman fled the United States in 2005 with millions of dollars of investor funds. He first traveled to Cozumel, Mexico, then to Panama and ultimately to Poland, where he assumed the identity of “Mikhail Grosman” and obtained a high quality fraudulent Russian passport. In the meantime, federal agents in the United States pursued leads as to Efrosman’s whereabouts. In a coordinated multinational effort, law enforcement authorities in Austria, the Czech Republic, and Poland tracked, located, and ultimately arrested Efrosman in Krakow, Poland, on May 28, 2010.
The sentence was imposed by United States District Judge Nicholas G. Garaufis at the federal courthouse in Brooklyn, New York.
The government's case was prosecuted by Assistant United States Attorney Daniel Spector.
The Defendant:
ALEKSANDER EFROSMAN
Age: 51
Internet-Based Consumer Electronics Vendor to Pay $700,000 to Resolve Claims for Underpaid PostageRead the Press Release
Yall Inc., an Internet-based vendor of consumer electronics, and its principal, Hang Feng (Nick) Wu, have entered into a settlement agreement in which they have agreed to pay the United States $700,000 to resolve allegations that they knowingly underpaid postage on large amounts of mail sent through the United States Postal Service. The settlement agreement has been approved by United States District Judge Roslynn R. Mauskopf.
The settlement was announced today by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the United States Postal Inspection Service.
In its complaint, filed in federal court in Brooklyn, the United States alleged that Yall and Wu sent thousands of underpaid mailings to consumers across the nation and around the world. The government further alleged that Yall and Wu failed to weigh the mail before presenting it to the Postal Service for mailing, while representing that their mail was paid in full. The complaint sought recovery under the False Claims Act, 31 U.S.C. §§ 3729-33, among other remedies. Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $5,500 to $11,000 for each false claim.
Yall does business through various websites, including Yallstore.com and the online auction and shopping website eBay.com. Yall sells accessories, peripherals and replacement parts, such as batteries, protective cases, AC adapters, and cables for laptops, cell phones, digital cameras, and handheld game consoles, among other popular electronics items.
“Full and fair competition in business requires a level playing field. Mailers who underpay postage gain an unfair advantage over their competitors, while short-changing the Postal Service of necessary funds to carry out its mission,” said United States Attorney Lynch. "We are committed to protecting the Postal Service from abuse and ensuring its financial viability by holding businesses and business owners accountable for underpaying postage.”
“Postal Inspectors will vigorously pursue individuals who underpay the Postal Service. The Postal Inspection Service appreciates the strong stance U.S. Attorney Lynch has taken against those who seek to take advantage of the Postal Service through underpaying postage,” said Inspector-in-Charge Bartlett.
In reaching this settlement, Yall, Inc. and Wu did not admit liability, and the government did not make any concession regarding the legitimacy of the claims.
This case was investigated by the United States Postal Inspection Service and handled by Assistant U.S. Attorney Ameet B. Kabrawala, with assistance from Affirmative Civil Enforcement Auditor Emily Rosenthal.
Inmate Sentenced to 3 + Years for Attempting to Escape Fci Prison at McdowellRead the Press Release
BLUEFIELD, W.Va. – A federal inmate was sentenced today to three years and one month in prison for attempting to escape the Federal Correctional Institution (FCI) at McDowell, announced U.S. Attorney Booth Goodwin. Jason Dunlap, an inmate at FCI McDowell, 35, previously pleaded guilty in September 2013. Dunlap’s sentence was imposed by Senior United States District Court Judge David A. Faber in Bluefield.
On May 7, 2013, Dunlap attempted to escape at FCI McDowell by climbing to the top of the first of two perimeter fences at the prison. Dunlap was immediately apprehended by prison officials.
The Court ordered the sentence to run consecutive to the defendant’s current prison term. Dunlap is currently serving a 188-month sentence on his convictions in federal court in California of bank robbery, armed bank robbery and interstate transportation of stolen motor vehicles.
The investigation was conducted by the Federal Bureau of Prisons. Assistant United States Attorney John File handled the prosecution.
Indictments Filed in Cleveland Heights Bank Robbery CasesRead the Press Release
Three separate indictments were filed charging five men for their roles in two bank robberies in Cleveland Heights late last year, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Lavontrae Melvin Durden, 19, of Cleveland, and Nathaniel Antoine Wright, 18, of Cleveland Heights, were indicted on charges of armed bank robbery and brandishing a firearm for the Nov. 22nd robbery of the Ohio Savings Bank located at 2066 Lee Road.
In a separate indictment, Lovell L. Briggs, 18, of Cleveland, was charged with conspiracy to commit armed bank robbery, aiding and abetting armed bank robbery and aiding and abetting brandishing a firearm for his role in the Nov. 22nd robbery of the Ohio Savings Bank located at 2066 Lee Road.
In a separate indictment, Rodney E. Johnson, 21, and Nautica Merritt, 20, both of Cleveland, were charged with armed bank robbery for the Dec. 7th robbery of the Fifth Third Bank at 12401 Cedar Road. Johnson faces an additional charge of brandishing a firearm.
“The citizens of Cleveland Heights are safer with this group locked up,” Dettelbach said.
“These five individuals put everyday citizens in danger with their aggressive and violent actions,” Anthony said. “This crew is off our streets through the collaborative efforts of the FBI Violent Crimes Task Force and the Cleveland Heights Police Department. The investigation continues to determine the full extent of their criminal activity.”
Cleveland Heights Police Chief Jeff Robertson said: “This case is the result of great collaboration between the Cleveland Heights Police Department, the FBI and the Cleveland Police Department in apprehending these violent individuals.”
These cases are being prosecuted by Assistant U.S. Attorneys Justin Seabury Gould and Kelly L. Galvin following investigation by the Federal Bureau of Investigation and the Cleveland Heights Police Department, with assistance from the Cleveland Division of Police and the Cuyahoga County Prosecutor’s Office.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Hunt County Man Guilty of Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 22-year-old Quinlan, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Colten David Barrow pleaded guilty on Sep. 11, 2013, to attempting to sell a machinegun and was sentenced to 24 months in federal prison on Jan. 15, 2014, by U.S. District Judge Michael
H. Schneider.
According to information presented in court, on Jan. 31, 2012, Barrow and Craig Marcus Cooper traveled together to Duke’s Truck Stop on Highway 64 in Van Zandt County, Texas to meet an individual interested in buying the machinegun. The defendants intended to sell the firearm to the individual for $10,000. However, the buyer was actually an undercover federal agent. The defendants were detained and the 9 mm, fully automatic machine gun with an attached silencer was seized. A federal grand jury returned an indictment on Mar. 27, 2013, charging the defendants with firearms violations.On Jan. 10, 2014, Cooper was sentenced to 18 months in federal prison.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.